The mezzanine loans (or preferred equity investments) made by KB Loan Fund II are part of the capital stack between the first mortgage (approximately 60%-65% LTV) and the equity provided by the Sponsor. The mezzanine loans are used as "bridge" financing for equity needed between the acquisition of the property and the sale of fractional interests in the underlying property owner or the property itself. Funds deployed by KB Loan Fund II will be secured by indirect interests in income-producing commercial real estate. The Sponsor currently has significant investor demand for its property interests and expects that demand to increase in the coming years.

INVESTMENT PROGRAM

A typical acquisition is one in which the Sponsor acquires a newly-constructed, single-tenant property with a financially strong tenant – usually a publicly-traded company. The Sponsor targets properties that investors would want to own if they had the equity needed for such a transaction, which is typically larger (in sales price) than what an investor could purchase individually. Although the Sponsor may invest in other types of fractional ownership interests, Delaware Statutory Trusts (DSTs) are presently the fractional ownership structures preferred by lenders due to the Sponsor retaining control of the investment and all major decisions throughout the life of the investment.

REPAYMENT PLAN

The mezzanine loans (or preferred equity investments) are retired as the fractional interests in the underlying property are sold to 1031-exchange investors. Mezzanine loans bear interest at a fixed rate and may include points and/or origination fees and have terms of up to twelve (12) months. Repayment of the mezzanine loans (or preferred equity investments) by the borrower are senior to any payment of fees to the Sponsor, although subordinate to the payment of any senior mortgage.

1 - Each loan made by KB Loan Fund II are secured by a pledge of indirect ownership interests in income-producing property and ownership interests in the trustee of the owner of such property. This material is provided for informational purposes only. It is not a recommendation or solicitation of any investment or investment strategy. Please see the Confidential Private Placement Memorandum of KB Loan Fund II, LLC dated March 17, 2016 for further information, including with respect to risk factors and conflicts of interests associated with the offering of KB Loan Fund II.

This website does not offer to sell, and is not a solicitation of an offer to buy securities. Offers can only be made through the Confidential Private Placement Memorandum of KB Loan Fund II, LLC dated March 17, 2016, which contains various important risk disclosures. The information provided on this website does not purport to be complete and should be viewed in conjunction with such Confidential Private Placement Memorandum. Projections of future performance are based on specific assumptions discussed more fully in the Confidential Private Placement Memorandum and do not constitute a guaranty of future performance. Interests in KB Loan Fund II, LLC may be sold only to "accredited investors" as defined in Regulation D under the U.S. Securities Act of 1933, as amended (the "Securities Act"), which, for natural persons, refers to investors who meet certain minimum annual income or net worth thresholds. Offers and sales of interests in KB Loan Fund II, LLC have not and will not be registered under the Securities Act or the laws of any U.S. state or non-U.S. jurisdiction and may be offered only pursuant to an exemption from registration. Neither the U.S. Securities and Exchange Commission nor any other regulatory authority has passed upon the merits of an investment in KB Loan Fund II, LLC, or has approved or disapproved of an investment therein or passed upon the accuracy or adequacy of this website and any supplementary materials describing an investment in KB Loan Fund II, LLC. An investment in KB Loan Fund II, LLC is not subject to the protections of the Investment Company Act of 1940, including the limitations on self-dealing, affiliated transactions and leverage contained therein. Interests in KB Loan Fund II, LLC are subject to legal restrictions on transfer and resale in accordance with the governing documents of KB Loan Fund II, LLC and applicable securities laws, and investors may be unable to sell or transfer their interests. In addition, there is no public market for the interests and no such market is expected to develop in the future.

There can be no assurance that the Annual Preferred Return will be achieved or that cash distributions will, in fact, be made, or if made, whether those distributions will be made when or in the amount anticipated. Investing in KB Loan Fund II, LLC involves substantial risk and investors should be able to bear a total loss of their investment.